The crypto market is seeing red, after a few excellent weeks where it climbed thousands of dollars to get tantalizingly close to the $10,000 mark. The price of Bitcoin (BTC) now sits just above $8,000, having dropped sharply over the last two days.
As is always the case with the crypto market, investors are quick to posit theories as to why the price might have dumped so quickly. One user on Reddit, Makoveli, pointed to some interesting transfers from Coinbase.
1. 25,000 BTC Gets Moved to Coinbase
About 6 and a half hours ago at the time of writing, and half an hour before the market began sliding, an individual moved over 25,000 Bitcoins (roughly $213 million) to a Coinbase wallet.
2. Funds Moved to Two Separate Wallets
Following that, the amount was split into 14,000 BTC and 11,000 BTC and moved from Coinbase to two separate wallets. The 14k BTC was moved from Coinbase about an hour after the dump. Sometime after, the 11k BTC followed. The two transfers were separated by roughly 40 minutes.
3. $10 Million Worth of USDT Moved
Shortly after, someone moved $10 million worth of Tether (USDT) to another wallet.
The suggestion is as follows: someone dumped $213 million worth of BTC, bought it back at $200 million, and pocketed the difference.
In truth, this is not new news for the crypto space. There has been some debate as to how much whales influence the market, but there is no way of quantifying the effect, and the whales themselves are subject to risk with their actions.
The market is without a doubt prone to manipulation – it is largely unregulated, after all – and savvy investors have devised ways to make the most out of it.